Microsoft reports drops in sales, profit

SAN FRANCISCO -- The cloud may be the future, but the specter of the PC lingers. Microsoft is the latest tech giant to learn that first-hand. Microsoft on Thursday posted substantial drops in revenue and earnings as it continues to navigate from its legacy PC business into emerging technologies -- a day after chip maker Intel announced a 11% workforce reduction. The computing giant reported a 5% decline in fiscal third-quarter revenue to 20.5 billion. Earnings of 3.8 billion, or 47 cents per share, fell from 5 billion, or 61 cents a share, in the same quarter a year ago.